Correlation Between AltaGas and EON SE

Can any of the company-specific risk be diversified away by investing in both AltaGas and EON SE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AltaGas and EON SE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AltaGas and EON SE ADR, you can compare the effects of market volatilities on AltaGas and EON SE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AltaGas with a short position of EON SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AltaGas and EON SE.

Diversification Opportunities for AltaGas and EON SE

0.0

Correlation Coefficient

AltaGas  EON SE

Pay attention - limited upside

The 3 months correlation between AltaGas and EON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AltaGas and EON SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EON SE ADR and AltaGas is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AltaGas are associated (or correlated) with EON SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EON SE ADR has no effect on the direction of AltaGas i.e., AltaGas and EON SE go up and down completely randomly.

Pair Corralation between AltaGas and EON SE

If you would invest  2,792  in AltaGas on May 6, 2025 and sell it today you would earn a total of  192.00  from holding AltaGas or generate 6.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AltaGas  vs.  EON SE ADR

AltaGas

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AltaGas are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, AltaGas may actually be approaching a critical reversion point that can send shares even higher in September 2025.

EON SE ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days EON SE ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, EON SE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AltaGas and EON SE

The main advantage of trading using opposite AltaGas and EON SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AltaGas position performs unexpectedly, EON SE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EON SE will offset losses from the drop in EON SE's long position.

The idea behind AltaGas and EON SE ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.